Regal Beloit, Rexnord Said to Weigh Industrial-Parts Tie-Up
(Bloomberg) -- Regal Beloit Corp. and Rexnord Corp., two Wisconsin-based industrial parts makers, have considered a combination that could boost growth and save costs, according to people familiar with the matter.
The companies have talked to potential advisers about the merits of a deal, said the people, who asked not to be identified because deliberations are private. The companies’ considerations may not lead to a transaction, said the people.
Regal Beloit shares jumped as much as 8.4%, and were up 2.6% to $139.22 at 11:34 a.m. in New York, valuing the Beloit, Wisconsin-based company at $5.7 billion. Rexnord climbed as much as 10% before settling about 1% higher, giving the Milwaukee-based company a market value of $5.4 billion.
Representatives for Rexnord didn’t respond to requests for comment. A representative for Regal Beloit declined to comment.
Regal Beloit produces industrial gear including electric motors and power transmission and power generation components for sectors such as aerospace, food and building. The company, led by Louis Pinkham, in October announced fourth-quarter and full-year guidance that beat analyst estimates, citing resilient orders despite the pandemic.
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